St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-09-18

"A larger net revenues"
mo, sir"
''What effect does the Mississippi river have
on rates to interior pointsY'
ut has cut quite figure, although traffic on
the river has been rather light this year."
Mr.. Clark here explained in relation
to "a statement previously made that
about 80 per cent. of the business of the
two cities, st. Paul and Minneapolis,
comes from east of Lake Erie, but it is
all general merchandise. Possibly it
might be 40 or As per cent. None of the
agricultural implements come by lake,
only general merchandise.
w. Is. Dean, of NicolS dS Dean, was
then called by Senator Pope, who pro-
duced the correspondence between Mr..
Tucker and him in the form of
pamphlet, which has been used for leg
lSlatlve purposes. He said:
Yes, the passages you refer to are the same.
l think the average rates paid by st. Paul
and Minneapolis merchants this year is
higher probably than during the navigation
season last year.
Cross-examined by Mr.. Truesdale.
Yes. the rates this time last year were eX-
tremely low, s to 10 cents, think, although
unusual war rates. 1 think the rate was
about 40 cents, but / am not positive, and
would have to consult the tariffs. They are
low also by reason of the competition of two
new roads having been opened up between
Chicago and ST. Paul.
Mr. Pope-Is it not fact that there is
always recession of rates as transportation
develops?
Mr.. Dean-That's usually the case.
WHAT JOSEPH CHAPMAN SAID.
Joseph Chapman, the commissioner
of the jobbing trade bureau of st. Paul
and Minneapolis, was next placed upon
the stand by Mr.. Pope. He testified:
Owing to the conditions, the present rate is
a reasonable one. No, l do not think the
rate between Chicago and ST. Paul remuner-
alive one; as compared with the very low
rates of last year 1t might be reasonable.
CroSS-examined by Mr.. Truesdale:
The rates between Chicago and St. Paul
and Minneapolis are very much lower than
the rates to Council Bluffs and Omaha. The
rates as adjusted by the Western association
are very much lower than to points south us
and west to the Pacific attribute the diff
ference between the rates from Chicago to
ST. Paul, and from Chicago to Mankato, to
the proximity of st. Paul and Minneapolis to
Duluth. This proximity makes the lower
rates from Chicago here necessary and it al
ways has 1 should say that the territory
west of here belongs of right to the trade of
ST. Paul and Minneapolis. think a, out rs
or 80 per cent. of the business coming here
by the lakes and from the East goes north
west of here. The rates are higher by way
OF Chicago than they are by Duluth. Yes,
that's true; in order for the jobbers of st.
Paul and Minneapolis to do any business in
the large territory northwest of here they
must have unusually favorable rates.
MIR. -KIMBAIL SAID.
General Freight Agent Louis f. Kim
ball, of the Minneapolis d ST. Louis
road, being in the room, was next
called. He said:
Yes, think the present adjustment of
rates between st. Paul and Mankato. as COM
pared to Wateryille, Red Wing and other
points on the line, is fair, taking into con-
sideration geographical position, river rates
and so forth. think the rates to Mankato
would be somewhat higher than to points on
the main line. We've got to have dividing
line somewhere. else we might extend the
rate clear to the Pacific.
Mr.. Pope-So you think the dividing line
should be drawn east of Mankato. Mr.
kimball. may ask, were you not in favor at
the conference OF giving the same rate to
Mankato as st. Paul?
MIR. Kimball-Yes, at first / entertained the
idea of putting the st. Paul rate into Manka-
to, but after | was shown what its effect
would be was not in favor of it.
Questioned by Mr.. Truesdale:
No, don't think there will ever be very
large amount of the jobbing business of
Mankato go to points east of there. To give
the same rate to Mankato as to Winona and
La Crosse would demoralze things very gen.
orally, think they can ship as many goods
on the present rate to points east as on the
st. Paul rate. / don't think you could do
any more business east of Mankato, Waseca
and Albert Lea on a 1919 cent rate than ON
the rate to st. Paul.
Senator Pope then submitted his ar
gument. He said:
We make a point that the road goes out of
its way, and shows, by strong evidence, in
doing so that the rates are satisfactory to it.
by making combination with other roads.
But it has no right to do SO, if it does so to
the prejudice of other points upon the line
He had gone thus far when Chairman
Cooley interrupted him with the follow
ing pertinent remark:
One difficulty in the case is that this road
makes connections with two other roads not
named in your complaint. If we should
make all order it would also affect those
other roads, and they should be given an OPP
portunity to be heard.
Judge Cooley suggested that Mr.. Pope
amend his complaint to include the
other roads, and then give them a
chance to be heard. Mr.. TrueSdale said
he was authorized to speak for the other
rOrdS, the Chicago, Rock Island & Pa
cific and the Burlington, Cedar Rapids
IL Northern. The complaint was ac-
cordingly amended so as to include
them and Senator Pope allowed to re-
sumo his argument, Mr.. TrueSdaie say
ing he would rather have the matter
settled at once. Mr.. Pope proceeded:
We think that, although the original road
was incorporated with the understanding
that it was for the improvement and develop
ment of the Cannon river valley, the inter-
est of these other two roads has become the
paramount influence in making this rate.
We are the biggest shipping point on the
line, except st. Paul and minneapolis l
would like to offer some matter here in evil
dence Submitting big pile of tariffs and
tables). These rates are from 20 to 40 per
fn
Waterville, if the rates to ST. Paul and Mime
apolis are remunerative; il not we think the
case is covered by your decision in the case
of the Louisville d Nashville We do know
this discrimination is very prejudicial to our
business. The discrimination this wear is not
so large. although it is quite large. 1t has
been prejudicial to other points 1t has been
worse in the past than under the present
law.
Mr.. Pope produced the letter of Mr..
Tucker, dated July z, 1886, to show that
with ''Such tremendous cut in rates
they ought to be able to make some con-
cession to us in the interior points,
Mr., Truesdale then offered his side of
the case, referring to the many compli-
cations the railroads have got in, all
which have developed during the last
year:
The business men believe that they have
been very unjustly Disseminated against in
the matter of freight rates, and they firmly
believe that. With this in view, the railroads
have been fearful, in consideration of the
long and short haul. that if they put in any
higher rates between Chicago and intermedi-
ate points, and between Chicago and these
two centers, and fearful of what suits may
be instituted and the fines, which are very
severe, they have been careful not to make
any higher rates to intermediate points. The
line l represent follows the most westerly
line. TO get any of the Red Wing business
our rates must be no higher than over the
Milwaukee road. At the taking effect of the
Interstate commerce law, the railroads of the
Northwest fixed their rates on a mileage pro
rata, and those rates practically went into
effect. new line, completed Aug. /, openly
announced the rate it would make I
do not believe there is any substantial